Philips: US fab closures to cut capacity 20%, charges

EmilyChurch

Philips Electronics
PHG, -0.95%
the largest electronics maker in Europe, on Thursday said it expects to reduce overall CMOS capacity by about 20 percent by closing two semiconductor fabrication operations in the U.S. in Albuquerque, New Mexico and in San Antonio, Texas fab in 2003. Philips previously announced plans to shutter the New Mexico plant. It expects the capacity cuts to lead to a utilization rate that is expected to deliver "positive operating results in the fourth quarter and still include capacity for growth." Philips plans at 200 million euro restructuring charge for the Texas fab; 30 million of which will be taken in the first quarter.

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